Correlation Between LNA Sante and Bonduelle SCA
Can any of the company-specific risk be diversified away by investing in both LNA Sante and Bonduelle SCA at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining LNA Sante and Bonduelle SCA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LNA Sante SA and Bonduelle SCA, you can compare the effects of market volatilities on LNA Sante and Bonduelle SCA and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in LNA Sante with a short position of Bonduelle SCA. Check out your portfolio center. Please also check ongoing floating volatility patterns of LNA Sante and Bonduelle SCA.
Diversification Opportunities for LNA Sante and Bonduelle SCA
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between LNA and Bonduelle is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding LNA Sante SA and Bonduelle SCA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bonduelle SCA and LNA Sante is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on LNA Sante SA are associated (or correlated) with Bonduelle SCA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bonduelle SCA has no effect on the direction of LNA Sante i.e., LNA Sante and Bonduelle SCA go up and down completely randomly.
Pair Corralation between LNA Sante and Bonduelle SCA
Assuming the 90 days trading horizon LNA Sante SA is expected to generate 2.02 times more return on investment than Bonduelle SCA. However, LNA Sante is 2.02 times more volatile than Bonduelle SCA. It trades about 0.0 of its potential returns per unit of risk. Bonduelle SCA is currently generating about -0.23 per unit of risk. If you would invest 2,400 in LNA Sante SA on August 28, 2024 and sell it today you would lose (5.00) from holding LNA Sante SA or give up 0.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LNA Sante SA vs. Bonduelle SCA
Performance |
| Timeline |
| LNA Sante SA |
| Bonduelle SCA |
LNA Sante and Bonduelle SCA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LNA Sante and Bonduelle SCA
The main advantage of trading using opposite LNA Sante and Bonduelle SCA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LNA Sante position performs unexpectedly, Bonduelle SCA can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Bonduelle SCA will offset losses from the drop in Bonduelle SCA's long position.| LNA Sante vs. Biomerieux SA | LNA Sante vs. Eurofins Scientific SE | LNA Sante vs. Sartorius Stedim Biotech | LNA Sante vs. SEB SA |
| Bonduelle SCA vs. Socit BIC SA | Bonduelle SCA vs. Bnteau SA | Bonduelle SCA vs. Casino Guichard Perrachon | Bonduelle SCA vs. SEB SA |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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